RPG Life Sciences eyes strategic acquisitions as cash-rich balance sheet fuels expansion plans

RPG Life Sciences’ financial strength has been reaffirmed by credit rating firm ICRA, which maintained its long-term rating at A+ with a stable outlook

RPG Life Sciences Ltd., part of RPG Enterprises, is actively scouting for acquisition targets to accelerate its growth strategy, with a war chest of Rs 223 crore in cash and zero debt, Managing Director Ashok Nair told Moneycontrol in an interview.

The company is in “serious discussions” with multiple assets, and while no timeline has been set, Nair emphasized that any deal must be value-accretive and prudently priced.

The pharma firm, part of the RPG Group, is leveraging its robust balance sheet to explore inorganic growth across APIs, formulations, and emerging therapeutic trends.

“We are open to strategic acquisitions, but valuations must make sense. We’re not rushing into anything,” Nair said.

RPG Life Sciences’ financial strength has been reaffirmed by credit rating firm ICRA, which maintained its long-term rating at A+ with a stable outlook. The agency cited the company’s debt-free status, strong operating margins, and healthy liquidity.

Nair who assumed office in May this year, outlined the company’s five-pillar strategy which includes building mega brands, expanding its monoclonal antibody (MAPS) and immunosuppressant portfolios, and scaling up its API and international operations.

Naprosyn, its flagship pain management brand, is on track to cross ₹100 crore in annual sales, growing at 16% year-to-date compared to a 3% CAGR earlier. Immunosuppressants, RPG’s largest therapeutic segment, are targeted to reach ₹100 crore domestically and ₹200 crore globally, Nair said.

Nair said the company is also focused on rejuvenating its product pipeline and enhancing manufacturing productivity. A fire incident at its MF4 API plant earlier this year temporarily impacted performance, but the facility has since been restored and is expected to resume commercial production by November.

The company has infused Rs 140–150 crore in capex over the past few years to modernize its plants, including EU and TGA-compliant facilities in Ankleshwar and Navi Mumbai. It holds regulatory approvals from Canada, Japan, and Australia, and recently secured Canadian OTC approval for Naprosyn, with Walmart expected to launch the product by early 2026.

RPG Life Sciences is also expanding into new geographies such as Algeria, Sudan, and Angola, while strengthening its presence in regulated markets like the UK and Germany. Although the U.S. remains on the radar, Nair said the company will seek FDA approval only when it has a sizable product basket to justify the cost and complexity.

The company’s domestic formulations business, which contributes over 70% of revenue, continues to outperform the market, growing at 16.6% in Q2 FY26 versus industry growth of 7.8%. Specialty business productivity has reached Rs 16.9 lakh per field rep, among the highest in the industry.

In the second quarter of FY26, RPG Life Sciences reported revenue from operations of ₹181.7 crore, marking a 5.5% increase year-on-year. Net profit for the quarter stood at ₹28.5 crore, down 9.6% from the same period last year, while EBITDA margin for Q2 FY26 was 21%, compared to 24.6% in Q2 FY25.

For the full fiscal year FY25, the company posted revenue of Rs 582.1 crore, up 13.5% from the previous year. EBITDA margin improved to 22.2%.

Looking ahead, RPG Life Sciences is building out its MABs (monoclonal antibodies) portfolio with new launches in rheumatology and nephrology, and exploring synergistic med-tech devices for early detection of chronic kidney disease. It is also evaluating entry into the trade generics segment, though its niche specialty focus has so far insulated it from pricing pressures.

Nair said he is targeting Rs 1,000 crore in revenue in the next 3-4 years.